Nahar Industrial Enterprises Ltd Directors Report

DIRECTORS REPORT

Dear Members,

Your directors have pleasure in presenting their 42nd Annual Report together with the audited financial statements for the financial year ended 31st March, 2026.

1. FINANCIAL RESULTS

The Companys financial performance for the year ended 31st March, 2026 is summarized below:

				(Rs.in Lacs)
Particulars	Standalone		Consolidated
	Current Year	Previous Year	Current Year	Previous Year
Revenue from operations	140,844.52	153,008.40	140,844.52	153,008.40
Profits/(Loss) Before Depreciation, Finance Cost and Tax	16,328.81	12,218.23	16,008.37	11,916.51
Less: Depreciation	5,035.11	4,761.73	5,035.11	4,761.73
Less: Finance Cost	4,311.63	4,595.95	4,311.63	4,595.95
Profit/(Loss) Before Tax	6,982.07	2,860.55	6,661.63	2,558.83
Less: CSR expenses u/s 135 of Companies Act, 2013	78.89	205.00	78.89	205.00
Add : Share of Profit/(Loss) of Associates			81.05	48.42
Profit/(Loss) Before Tax	6,903.18	2,655.55	6,663.79	2,402.25
Less: Tax Expense
(i) Current Tax	494.00	350.00	507.65	362.75
(ii) Deferred Tax	1,012.22	258.35	1,021.86	190.68
Profit/(Loss) After Tax for the period	5,396.96	2047.20	5,134.28	1,848.82
Other Comprehensive Income
Items that will not be reclassified to profit or loss
i) Re-measurement gains/(losses) on defined benefit plans	177.35	172.18	177.35	172.18
Income tax effect on the same	(44.63)	(43.34)	(44.63)	(43.34)
ii) Net gain /(loss) on FVOCI equity instruments Income tax effect on the above	(1.12)	1.76	(1.12)	1.76
Total Comprehensive Income for the period	5,528.56	2,177.80	5,265.88	1,979.42

2. PERFORMANCE REVIEW

The Company operates in two Business segments

i.e. Textile and Sugar as per Ind AS-108 (Operating Segment).

i) Textile: The total turnover of this segment (Yarns and Fabrics) is Rs. 1190.17 crores as against Rs. 1326.32 crores in the previous year showing an decrease of 10.27%. The textile segment accounts for 84.57% (including inter-segment) of the total turnover of the company for the year ended 31st March, 2026. The Business wise performance of Textile segment is as under:

• Yarn: The Company has produced 40426 MTs of yarn as against 40322 MTs in the previous year.

• Fabric: The Company has produced 600.08 lacs meters of fabrics (both grey and processed) as against 647.78 lacs meters in the previous year.

ii) Sugar: The turnover of sugar segment has increased to Rs. 216.33 crores as against Rs. 203.46 crores in the previous year showing an increase of 6.33%. The Company has produced 332350 Qtls. of sugar as against 431595 Qtls. in the previous year at a Recovery rate of 10.06 % (previous year 9.87%).

Overall Performance (Standalone/Consolidated)

We wish to inform you that during the year under review on standalone basis, the company has achieved operational income of Rs. 1408.45 crores as against Rs. 1530.08 crores showing a decrease of 7.95% over the previous year. The company has earned Profit before depreciation, finance cost and tax of Rs. 163.28 crores as against Rs. 122.18 crores in the previous year. After providing for Depreciation of Rs. 50.35 crores (previous year Rs. 47.62 crores), finance cost of Rs. 43.12 crores (previous year Rs. 45.96 crores) and Tax Expenses of Rs. 15.06 crores (previous year Rs. 6.08 crores) (inclusive of Deferred Tax) the Profit after tax for the year comes to Rs. 53.97 crores as against Profit of Rs. 20.47 crores in the previous year.

We wish to inform you that during the year under review on consolidated basis, the company has achieved operational income of Rs. 1408.45 crores as against Rs. 1530.08 crores showing a decrease of 7.95% over the previous year. The company has earned Profit before depreciation, finance cost and tax of Rs. 160.08 crores as against Rs. 119.16 crores in the previous year. After providing for Depreciation of Rs. 50.35 crores (previous year Rs. 47.62 crores), finance cost of Rs. 43.12 crores (previous year Rs. 45.96 crores), Share of Profit/ (Loss) of Associates of Rs. 81.05 lacs (previous year Rs. 48.42 lacs) and Tax Expenses of Rs. 15.30 crores (previous year Rs. 5.53 crores) (inclusive of Deferred Tax) the Profit after tax for the year comes to Rs. 51.34 crores as against Profit of Rs. 18.49 crores in the previous year.

3. TRANSFER TO RESERVES

Your company has transferred Rs. 5528.56 lacs [previous year Rs. 2177.80 lacs] to the General Reserves and thus companys Reserves (Other Equity) stand increased to Rs. 99451.24 lacs as on 31.03.2026 as against Rs. 93922.68 lacs as on 31.03.2025.

4. CREDIT RATING

During the year, the Rating agency CRISIL Limited vide its letter dated June 02, 2026 has accorded the Long Term Rating of total bank loans facilities CRISIL A-/Stable (Re-affirmed) and Short Term Rating CRISIL A2+ (Re-affirmed).

5. DIVIDEND AND DIVIDEND DISTRIBUTION POLICY

In order to retain the profits of the company, your directors do not recommend any dividend for the financial year ended on 31st March, 2026. The requirement of formulating a Dividend Distribution Policy as per Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable to the company.

6. INVESTOR EDUCATION AND PROTECTION FUND

Pursuant to the applicable provisions of the Companies Act, 2013 and rules framed there under, the amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of transfer to the unpaid account is required to be transferred to Investor Education and Protection Fund (IEPF) Account of the Central Government. The Company has already transferred the amount of unclaimed dividend up to financial year 2016-17 to the IEPF. The dividend so transferred to IEPF Account can be claimed back by the concerned members from the IEPF authority after complying with the procedure prescribed under the rules.

In terms of the requirements of Section 124(6) of the Companies Act, 2013 read with Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended (the Rules) the Company is required to transmit the Shares to the IEPF Account in respect of which the dividend has remained unpaid or unclaimed for a period of seven consecutive years. The shares transmitted to the IEPF Account can be claimed back by the concerned members from the IEPF authority after complying with the procedure prescribed under the rules.

The details of dividend transferred and shares transmitted to IEPF authority are also provided on the website of the company i.e. www.owmnahar. com

7. SHARE CAPITAL

The paid up Share Capital of the Company as at 31st March, 2026 was Rs. 83,20,55,810/- consisting of Equity Share Capital of Rs. 43,20,55,810/- divided into 4,32,05,581 Equity Shares of the face value of Rs. 10/- each and Preference Share Capital of Rs. 40,00,00,000/- divided into 40,00,000 - 5.5% Non-Convertible Non-Cumulative Redeemable Preference Shares of the face value of Rs. 100/- each (Preference Shares). During the year the Company has not issued any shares with differential voting right nor has granted any stock options or sweat equity. As on 31st March, 2026 none of the Promoters /Directors of the Company hold instruments convertible into equity shares of the Company.

8. DEPOSITS

During the year, the Company has not accepted any deposit from the public. As such there are no outstanding deposits within the meaning of Section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.

9. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENT BY THE COMPANY

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the Financial Statements.

10. MATERIAL CHANGES AFFECTING FINANCIAL POSITION OF THE COMPANY

No changes and commitments affecting the financial position of the company have occurred during the year under review as well as the period between the end of financial year till the date of this report.

11. DIRECTORS

Appointment and change in Directors

In accordance with the provisions of Section 152 of the Companies Act, 2013 and the Companys Articles of Association Sh. Dinesh Gogna (DIN: 00498670) and Sh. Navdeep Sharma (DIN: 00454285), Directors of the Company will be retiring by rotation at the forthcoming Annual General Meeting and being eligible offer themselves for reappointment. Accordingly, the requisite resolution(s) are proposed at the ensuing Annual General Meeting for approval.

Declaration by Independent Directors

Necessary declaration has been obtained from all Independent Directors under sub-section (6) of Section 149 of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI (LODR) Regulations, 2015.

Your Board confirms that in its opinion the Independent Directors possess the requisite integrity, experience, expertise, proficiency and qualifications. All the Independent Directors on the Board of the Company are registered with Indian Institute of Corporate Affairs (IICA) as notified under section 150(1) of the Companies Act, 2013.

Number of Meetings of the Board

During the year five Board Meetings were convened and held on 30.05.2025, 12.08.2025, 14.11.2025, 25.11.2025 and 14.02.2026. The detail thereof is also given in the Corporate Governance Report. The intervening gap between the meetings was within the period prescribed under the Companies Act, 2013.

Board Evaluation

Pursuant to the provisions of Companies Act, 2013 and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Company has devised a policy for performance evaluation of the board, its committees and all the Directors individually as per the criteria laid down by the Nomination & Remuneration Committee of the Company. The manner of evaluation is stated in the Corporate Governance Report forming an integral part of this report.

Independent Directors Meeting

During the financial year 2025-26, the Independent Directors met on 13.12.2025, inter-alia, to discuss:-

(i) The performance of Non-Independent Directors and the Board as a whole;

(ii) The performance of the Chairman of the Company taking into account the views of Executive and Non Executive Directors and

(iii) To assess the quality, quantity and timeliness of flow of information between the company management and the board that is necessary for the board to effectively and reasonably perform their duties.

12. DIRECTORS RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3) (c) and (5) of the Companies Act, 2013:-

(i) that in the preparation of the Annual Accounts for the year ended on 31st March, 2026, the applicable accounting standards have been followed along with proper explanation relating to material departures;

(ii) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2026 and of the profit of the Company for the year ended on that date;

(iii) that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that annual accounts have been prepared on a going concern basis;

(v) that the Directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

(vi) that the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

13. ANNUAL RETURN

The web-link for the Annual Return for the financial year 2025-26 in the Form MGT-7 is placed on the Companys website at http://www.owmnahar.com/ nahar_ie/pdf/annual-return-2025-26.pdf

14. RELATED PARTY TRANSACTIONS

During the financial year under review, all transactions entered into with related parties as defined under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are in the ordinary course of business and at arms length basis. The company has not entered into any contract or arrangement with related parties/Group companies other than arms length price. The details of Related Party Transactions are placed before the Audit Committee for its review and approval on quarterly basis. These transactions were entered into as per the Companys policy on Related Party Transactions and are approved by the Audit Committee, Board and shareholders. The companys policy on Related Party Transactions is available at the web link: www.owmnahar. com/nahar_ie/pdf/RPT_Policy.pdf. The details of Related Parties transactions are given in Note No. 38 of the Notes to Financial Statements. Pursuant to the provisions of section 134(3) Form AOC-2 is annexed herewith as Annexure-A.

15. AUDIT COMMITTEE

The Company has already constituted an Audit Committee pursuant to Section 177(8) read with Rule 6 of the Companies (Meetings of the Board and its Powers) Rules, 2014 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Presently, the Audit Committee of the Company consists of Sh. Dinesh Gogna, Dr. Manisha Gupta, as Members and Dr. Roshan Lal Behl is the Chairman of the Audit Committee. The detailed information regarding Audit Committee and its terms of reference is given in Corporate Governance Report forming an integral part of the Directors Report.

16. NOMINATION & REMUNERATION COMMITTEE

The Company has already constituted a Nomination & Remuneration Committee pursuant to Section 178(1) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Presently, the Nomination & Remuneration Committee consists of Dr. Roshan Lal Behl and Dr. Anchal Kumar Jain as Members and Dr. Yash Paul Sachdeva is the Chairman of the Nomination & Remuneration Committee. The detailed information regarding Nomination & Remuneration Committee and its terms of reference is given in Corporate Governance Report forming an integral part of the Directors Report.

17. RISK MANAGEMENT

The Company has laid down a Risk Management Policy and identified threat of such events which if occurs will adversely affect the ability of the company to achieve its objectives. Evaluation of business risk and managing the risk has always been an ongoing process in your company. The Audit Committee has also been delegated the responsibility for assessment, mitigation, monitoring and review of all elements of risks which the Company may be exposed to. The Board also reviews the risk management and minimization procedures.

18. VIGIL MECHANISM/ WHISTLE BLOWER POLICY

The Board adopted a Vigil Mechanism/ Whistle Blower Policy as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and section 177 of the Companies Act, 2013 to report genuine concerns or grievances about unethical behavior of employees, actual or suspected fraud or violation of the Companys Code of Conduct. The Companys Vigil mechanism/Whistle Blower Policy is available at the Companys website i.e. www.owmnahar.com.

19. INDIAN ACCOUNTING STANDARD (IND AS) AND INTERNAL FINANCIAL CONTROL

The Indian Accounting Standard (Ind AS) became applicable on the Company w.e.f. 1st April, 2016. Accordingly, the Financial Statements have been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Amendment Rules, 2016. The Company is having adequate internal financial control systems and procedures which commensurate with the size of the Company. The Company is having Internal Audit Department which ensures optimal utilization and protection of Companys resources.

The Internal Auditor monitors and evaluates the efficiency and adequacy of internal control systems in the company, its compliance with operating systems, accounting procedures and also ensures that the internal control systems are properly followed by all concerned departments of the company. Significant audit observations and corrective actions thereon are presented to the Audit Committee of the Board. The Company has appointed M/s. S.Jain & Co., Chartered Accountants (Firm No. 09593N) as Internal Auditor of the Company for the financial year 2026-27.

20. COMPLIANCE WITH SECRETARIAL STANDARDS

During the year, the Company has complied with the applicable Secretarial Standards as prescribed under section 118 of the Companies Act, 2013.

21. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no significant and material orders passed by the Regulators/Courts that would impact the going concern status of the Company and its future operations.

Other Information(s)

A. Details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year Not applicable. No such application is made or pending during the year.

B. Details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the banks or financial institutions along with the reasons thereof Not applicable. During the financial year 2025-26 there is no instance that the Company has made any one time settlement with Banks or Financial Institutions.

22. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has constituted a Corporate Social Responsibility (CSR) Committee of the board in accordance with section 135 of the Companies Act, 2013. The Company has adopted a CSR Policy and undertaking CSR programmes/ projects along with group companies under one umbrella through Oswal Foundation (OSF) which is a registered society formed in 2006 having its charitable objects in various fields and registered with MCA vide registration No. CSR00000145. The CSR policy of the company has been placed on the Companys website at web-link www.owmnahar.com/nahar_ie/pdf/CSR_ Policy_NIEL.pdf. The report on CSR activities as required under the Companies (Corporate Social Responsibility) Rules, 2014 including brief outline of the Companys CSR policy is annexed herewith marked as Annexure-B.

During the year, two meetings of CSR committee were held on 12.08.2025 and 14.02.2026 and all the members were present in the meeting. Pursuant to the provisions of Section 135 of the Companies Act, 2013, for the financial year 202526 there is a CSR liability of Rs. 78,88,060/- on the Company for spending CSR expenses. The company has made compliance of the applicable provisions of the CSR obligation for the year and contributed Rs. 78,89,000/-. The excess amount of Rs. 940/- paid during the current financial year is available for set-off in the succeeding financial years.

23. NOMINATION & REMUNERATION POLICY

The Board has, on the recommendation of Nomination and Remuneration Committee, framed a policy for appointment and remuneration of Directors, Key Managerial Personnel and Senior Management of the Company. The policy also lays down criteria for determining qualifications, positive attributes, independence of directors and other matters provided under section 178 of the Companies Act, 2013. The Nomination and Remuneration policy of the company is elaborated in the Corporate Governance Report forming an integral part of this report.

24. AUDITORS

i) Statutory Audit & Auditors Report

The shareholders at their 38th Annual General Meeting (AGM) held on 26th September, 2022 had already approved the appointment of M/s. K.R. Aggarwal & Associates, Chartered Accountants, (Firm Registration No. 030088N) as statutory auditors of the Company, to hold office from the conclusion of 38th AGM up to the conclusion of 43rd AGM to be held in the year 2027. The Auditors Report on the accounts of the Company for the financial year 2025-26 is self-explanatory and requires no comments. No frauds were reported by the auditors under section 143 (12) of the Companies Act, 2013.

ii) Cost Auditor & Cost Audit Report

Pursuant to Section 148 of the Companies Act, 2013 read with Companies (Cost Records & Audit) Amendment Rules, 2014, the cost audit records maintained by the Company in respect of its textiles and sugar segments are required to be audited. The Company has maintained accounts and cost records with respect to Textile and Sugar business as specified by the Government under Section 148(1) of the Companies Act, 2013. M/s. R.R. & Co., Cost Accountants, Ludhiana has carried out cost audit for applicable businesses during the year. Your Directors had, on the recommendation of the Audit Committee, appointed M/s. Khushwinder Kumar & Associates, Cost Accountants, Jalandhar (Firm Registration No. 000102) to audit the cost accounts of the Company for the financial year 2026-27. As required under the Companies Act, 2013, the remuneration payable to the cost auditor is required to be placed before the Members in a general meeting for their ratification. Accordingly, a resolution seeking members ratification for the remuneration payable to M/s. Khushwinder Kumar & Associates, Cost Accountants, Jalandhar, is included in the Notice convening the Annual General Meeting.

iii) Secretarial Audit & Secretarial Audit Report

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and rules made there under, the shareholders of the company in the 41st Annual General Meeting held on 29^th September, 2025 had appointed M/s. PS.Bathla & Associates, a firm of Company Secretaries in Practice (C.P No. 2585) to undertake the Secretarial Audit of the Company for a term of five consecutive years commencing from Financial Year 2025-26 to Financial Year 2029-30. The Secretarial Audit Report for the financial year 2025-26 is attached as Annexure-C and forms an integral part of this Report. There is no secretarial audit qualification for the year under review.

25. KEY MANAGERIAL PERSONNEL

As per the provisions of Section 203 of the Companies Act, 2013 Sh. Kamal Oswal, Vice Chairman-cum-Managing Director, Sh. Bharat Bhushan Gupta, Chief Financial Officer and Sh. Mukesh Sood, Company Secretary are the Key Managerial Personnel of the Company.

26. PARTICULARS OF EMPLOYEES

The information required pursuant to Section 197 read with Rule 5(1), 5(2) and 5(3) of Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 (as amended up to date) in respect of employees of the Company, forming part of the Directors Report for the year ended 31^st March, 2026 is given in Annexure-D to this Report.

27. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of Companies (Accounts) Rules, 2014, is annexed herewith as Annexure-E.

28. CORPORATE GOVERNANCE REPORT

Your Company continues to follow the principles of good corporate governance. The corporate governance report along with Auditors certificate regarding compliance of the conditions of corporate governance as stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 confirming compliance is annexed herewith as Annexure-F and forms part of this Report.

29. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the submission of Business Responsibility and Sustainability Report is not applicable to the company.

30. MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Management Discussion and Analysis Report for the year under review as stipulated under the Regulation 34(2)(e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is annexed herewith as Annexure-G and forms part of this Report.

31. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

As on 31st March, 2026 the company has five Wholly Owned Subsidiaries namely (i) JLO Commercial Ventures Limited (ii) JLO Reality Private Limited (iii) AKO Schools Private Limited (iv) NIEL Gorakhpur Logipark Private Limited and (v) Creative Logipark Private Limited. The company does not have any material subsidiary. The company is having four Associate Companies namely (i) J L Growth Fund Limited (ii) Vardhman Investment Limited (iii) Atam Vallabh Financiers Limited and (iv) OWM Renew LLP The accounts of the Wholly Owned Subsidiaries and Associate Companies have been consolidated in accordance with Section 129(3) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014; Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and applicable Accounting Standards (Ind AS). The audited consolidated financial statements are provided in the Annual Report. A statement containing salient features of financial statements of Subsidiary/Associate companies in Form AOC-1 is annexed with the financial statements.

32. STATEMENT WITH RESPECT TO COMPLIANCE OF THE PROVISIONS RELATING TO THE MATERNITY BENEFIT ACT 1961

The Company has duly complied with the provisions of the Maternity Benefit Act, 1961 during the year under review. All eligible female employees have been extended maternity benefits, including leave and wages, as per the statutory requirements. The Company remains committed to upholding employee welfare and ensuring a safe and inclusive workplace in accordance with applicable laws.

33. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has adopted a policy against sexual harassment and constituted an Internal Compliant Committee in line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder. During the Financial Year 2025-26,the Company has not received any complaints on the same and hence, no complaint was pending as at March 31, 2026.

Number of complaints of sexual harassment received in the year NIL Number of complaints disposed off during the year NIL Number of cases pending for more than ninety days NIL

34. INDUSTRIAL RELATIONS

Industrial relations throughout the year continued to be very cordial and satisfactory.

35. ACKNOWLEDGEMENT

Your directors would like to express their appreciation for the assistance and co-operation received from financial institutions, banks and shareholders. They also place on record their appreciation for the cooperation of employees at all levels.

For and on behalf of the Board of Director
	Jawahar Lal Oswal
Place: Ludhiana	Chairman
Date: 14th August, 2026	(DIN:00463866)